20 Mar 2015
UK gilt yields set to fall for the second consecutive week
FXStreet (Mumbai) - The yields on the short duration as well as on the long duration Gilt yields in the UK are on the course to register the second consecutive weekly decline on the back of the dovish Bank of England (BOE) minutes and election uncertainty.
The 10-year Gilt yield is currently trading at 1.548%, well below the current week’s opening level of 1.695%. The slide began after the BOE minutes expressed concerns about the disinflationary impact of the Pound, leading markets to believe that the rate hike would be delayed.
Further pressure came on Thursday after the BOE economist Haldane said that the Bank could be forced to cut rates in order to tackle deflation. Meanwhile, the slide in the Treasury yields post the dovish Fed statement also dragged the Gilt yields lower.
The 10-year Gilt yield is currently trading at 1.548%, well below the current week’s opening level of 1.695%. The slide began after the BOE minutes expressed concerns about the disinflationary impact of the Pound, leading markets to believe that the rate hike would be delayed.
Further pressure came on Thursday after the BOE economist Haldane said that the Bank could be forced to cut rates in order to tackle deflation. Meanwhile, the slide in the Treasury yields post the dovish Fed statement also dragged the Gilt yields lower.